The problem with using a hardware dongle is that there is a cost involved and they are not a 100% secure.
Hacker can still crack the software and bypass the activation code just as easily as they would a software method.
At least with online verification a server can check if you've got a legitimate copy before it allows you to download any updates and patches etc.
I don't mind the ROF method myself and have only been stung once witht the server being down.
Cheers!
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